Turnover rent agreements have been used in the retail and leisure property sectors for some time. They are now becoming far more prevalent as the market responds to the fallout from the lockdown.
Ongoing travel restrictions and many workers still working from home are having a deep impact on many businesses' sales. As a result, it is proving difficult for tenants to meet their rent obligations to their landlords.
In response, tenants are increasingly seeking to move away from a fixed base rent.
Neil Dryer explains in Property Investor News the concept of a turnover rent agreement as well as its pitfalls and risks.
'Turnover rent agreements' is available to read in the September issue of Property Investor News.
Neil is a partner in the real estate team. He has extensive experience acting on a broad range of commercial property transactions, with a particular focus on investment transactions and complex development projects, as well as on leasing and property management and real estate finance.